9-9 Overhead Variances; Service Company LO5 EXCEL Chalmet, Inc., operates a delivery service for over 70 restaurants. Chalmet has a fleet of vehicles and has invested in a sophisticated computerized communications sys- tem to coordinate its deliveries. Chalmet has gathered the following data on last year's operations: a. Deliveries made: 73,000 b. Direct labor: 52,000 delivery hours at $8 c. Actual fixed overhead: $710,000 d. Actual variable overhead: $160,000 Chalmet employs a standard costing system. During the year, the following rates were used: standard fixed overhead rate, $14 per delivery hour; standard variable overhead rate, $3.00 per hour. The labor standard requires 0.75 hour per delivery. (These rates were based on a standard normal volume of 50,000 delivery hours.) Required 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. Activate